OMS Inc. sells a product for $50 per unit. Variable expenses are $32 per unit, and fixed expenses are totaled $108,000 per month. The company is currently selling 8,000 units per month.

(2 mark) - (a) How many units would have to be sold if the selling price is reduced by 10% to yield a minimum net operating income of $35,000 per month. unanswered

(2 marks) - (b) Refer to the original data, if the fixed expenses remain unchanged, selling price is reduced by 10% and total monthly unit sales are increased by 25%, the net operating income will be $ unanswered

(1 mark) - (c) Refer to the answer to part (b), the degree of operating leverage will be $ unanswered

(2 marks) - (d) Assume fixed costs remain unchanged, what will be the impact on break-even point if variable expenses per unit increase as a percentage of selling price and why?